Cache Exploration Inc. Announces Closing of First Tranche of Private Placement
Vancouver, August 4, 2020 - Cache Exploration Inc. (the "Company", or "Cache"), (TSXV:CAY), is pleased to announce, further to its press releases of July 6, 2020, July 23, 2020, and July 31, 2020, that it has closed the first tranche of its non-brokered private placement of 14,766,435 units (each, a "Unit") of the Company at a price of $0.07 per Unit for aggregate proceeds of $1,033,650 (the "Private Placement"). Each Unit consisted of one common share and one common share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder to purchase one additional common share at an exercise price of $0.15 per share for a period of 24 months from the date of closing. All of the securities issued in connection with the Private Placement are subject to a statutory four-month hold expiring on December 5, 2020.
In connection with the Private Placement, the Company paid cash finders' fees in the amount of $27,440.00 and issued a total of 392,000 finder's warrants (the "Finder's Warrants"). The Finder's warrants have the same terms as the Warrants issued under the Private Placement, but are non-transferable.
The Company intends to use the net proceeds of the Private Placement to fund exploration on the Kiyuk Lake Property, for current liabilities and for general working capital purposes. The Private Placement is subject to final acceptance by the TSX Venture Exchange upon filing of final documentation.
The Company intends to complete a second tranche of the Private Placement in the near future.
One insider of the Company subscribed for a total of 2,000,000 Units in connection with the Private Placement. Such participation is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of any securities issued to nor the consideration paid by such persons exceeded 25% of the Company's market capitalization.
The Company also announces that it has granted incentive stock options to certain directors, officers, and consultants of the Company to purchase up to 2,200,000 common shares in the capital of the Company pursuant to the Company's stock option plan. The options are exercisable on or before August 4, 2022 at an exercise price of $0.12 per share. The grant of options is subject to regulatory approval.
On behalf of the Board of Directors
"Jack Bal"
Jack Bal
Chief Executive Officer
FOR MORE INFORMATION, PLEASE CONTACT:
Jack Bal
Tel. 604-306-5285
jackbalyvr@gmail.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Forward-Looking Information
This news release contains certain forward-looking statements within the meaning of Canadian securities laws, including statements regarding the Private Placement of Cache Exploration Inc. ("Cache") and the availability of capital and finance for Cache to execute its strategy going forward. Forward-looking statements are based on estimates and assumptions made by Cache in light of its experience and perception of current and expected future developments, as well as other factors that Cache believes are appropriate in the circumstances. Many factors could cause Cache's results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: discrepancies between actual and estimated results from exploration and development and operating risks, dependence on early exploration stage concessions; uninsurable risks; competition; regulatory restrictions, including environmental regulatory restrictions and liability; currency fluctuations; defective title to mineral claims or property and dependence on key employees. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.
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